InterContinental Hotels Group
Panmure Gordon has raised its target price from 1724p to 1920p, while leaving its “hold” recommendation unchanged, following its recent full-year results. The broker said it expects the group to dispose of the InterContinental New York Barclay this year for around $340m and the London Park Lane for around $400m next year, paving the way for a further return of capital to shareholders of around $1bn.
Deutsche Bank has increased its target price from 760p to 898p and has kept its “buy” recommendation. The bank said trading at the catering giant has remained strong in the second quarter and it would expect a confident half year update when the group reports on 26 March. It is predicting a 5.1 per cent growth in revenue at constant currencies versus just less than six per cent in the first quarter of the year.
Liberum Capital has cut it target price from 675p to 640p and downgraded Drax to “hold”. The company is set to complete the conversion of its first biomass unit next month and Liberum said the 640p price is “as much of the upside in the biomass story as is prudent to include at this point in time.” The broker said its “hold” stance also reflects the strong share price performance, up 15 per cent in the year to date.